Citi's Chairman Richard Parsons to Step Down

3/2/2012 4:00PM

Citigroup Chairman Richard Parsons will step down from the board after 16 years, stocks end lower as Yelp soars in its public debut, GM temporarily halts Volt hybrid production, how to outsmart social security and psychos on Wall Street.

This transcript has been automatically generated and may not be 100% accurate.

I ... the ... IRA got a lot sexier will tell you why they're not just about stocks and bonds anymore and ... the people are really running out Wall Street Al Lewis is here to tells all about it and ... be afraid people be very afraid well I'm Kelsey Hubbard and welcome to the days of ... David Weidner for the half hour is joining in the city here is the second period for ... the ... dentist ... no cattle ... I am in the fall this year I re working of all that suits your coming out later and more in it that all of that but first we did have some breaking news on this the peak of the Wall Street Journal Collin Barr is here with this exclusive story ... column thanks for joining us today and ... that the big news about that Richard Parsons right he's stepping down he's not going to stand for re-election sake chairman who's been chairman since the ... financial crisis three years ago ... and he's been on the board first sixteen years so he's he's further prove that he's been ... doing with Citigroup ... through a lot of changes including the merger that created Citigroup and ... the of the of the crisis summit it so it's it's a big break for them in terms of deal ... you ... that was then and this is now ... why now why is the stepping down ... well I think that I know he he won't go insane Ariki Hansen said so far but IPO our impression is that he feels the Kiwis things you ... didn't offer a champion of the creek and it ... on the content is the CEO of Citigroup e somebody who was an investment banker in hedge fund manager whose of Morgan Stanley ... um and then he kind of got pushed into the senior job after city block in the in the early stages the financial crisis and are a lot of questions ... about whether he was the right guy for ... the drop in them Parsons who has a lot of ... the financial industry experience in this politely put the very well connected ... with his championed the sort of sets you we've got to give this guy a chance that this guy can show what he has ... the right stuff and so whether can really tell stories of whatever whatever that ... means ... the trees be seen but he certainly isn't strong versus dead beneath the last few years go there fewer questions now about whether he's right I've gotten city is is nothing new ... this upgrade is bankable heightening investors' it was a lot of money of recent years bought ... um it's better than it was it was on death's door going on ... I think it's interesting ... you know Dick Parsons is a cracker right now looks like ... well he was sort of party chairman in overtime ... but as you mentioned ... here's a guy who was at the bank for a long time in answer to long time for ... us so he's been there through the banks ... WorkCover if you wanted ... you to juggle work ... it was also there ... as part of the bank's demise from the middle of a depositions in a lot of people of another order ... had been really ... criticized ... in ... Brooklyn ... write what he think ... his legacy is going to be its its city ... yet that it's inching question because Frankie was that he was part of this group that was charged with wandering Citigroup's of management during the run-up to the bubble during from the crisis ... and they did they obviously didn't even drop in so you know everyone else got Turner for board pretty much you have a lot of people like Rubin ... of like warm strong is another one is the third high-profile people ... and give us the whole good at that time and and these new whenever he wants to press the wrong people stressing what were these guys doing in this session that none of that going for cash ... that is the key ... seems to just be someone who ... knows how to work my way this and he knows how to know he's he's he's somebody who's able to use a lot of criticism of Citigroup from regulators for instance which is ... was a pretty big service for them and they were in all water was coupled with some of the Rakyat leaders and useable this and that now so ... it's like operators ... that ... well yet that the law to benefit them in and continue to go on a lot people feeling Wyatt were more people ... whether discharged really blame for what happened to Natalee speaker for the wannabe thank the people who are in charge of yet again has managed to avoid a laugh with another friend one for Citigroup was was a deal with was a big player and some the things that made the financial crisis about things like collateralized debt all nations because its mortgage related things ... an epic your Citigroup was in the prestigious being it is the sort of fun for you ... the ... point is is sapping some the other players in the finest crystal with doesn't like to focus on them in terms of ... what were these guys doing one thing is that a deal on going dollars in fines in the orchid in some these cases which they did admit to ... but they didn't admit to that they were charged that didn't meet anyone who they were charged with with was doing ... the onthe on the subject is the thing so that the courts can be pretty fair enough to get something out of the internet so there are two other Alan Bell the use of Alcoa and then ... on it in two columns to surprise that the person they're both keeping ... bomb ... the old building has been there since almost as long as persons as he struck that started in nineteen ninety seven he was one of these All-Star directors who again was there for LPs from the highs and lows so ... we're still probably point out that this is the same Dick Parsons Your Time Warner investors this is the guy ... who was basically there ... after the AOL merger and really faltered at the company through tough times ... and if you're an investor you probably got the same city retreat in the stock never really went ... on and watch while he was there and yet it is the right to compare all because the key driver of these places a time when ... these folks so bad and then you needed and ... give you keep me more ... from upper with ... the standard I will thank the much for that I didn't think it is ... at the markets today we have Brendan Conway joining us we know the Dow had a big day on its IPO ... and while protesting influencing things Brennan had things wrap up four s today that we talk about our ... afternoon ... we spent the day mostly lower in the majors you the stock indexes ... at last check we were just don't ever slight here ... this this is one of these days yet ... basically flat ... to me though that the real action takes place in smaller stocks ... if you look at the small cap index as they were off by one percent ... or greater in the last I checked ... on what's happening here in this is also to the look of fund flows in new exchange traded funds ... it seems as though a lot of investors are moving away from the real risk on the side of things are starting to book profits ... because they're wondering you know it's of rallies going to take to ... take a bit of a pious here ... I'm certainly what you saw this week basically is its stock indexes were centrally flat ... I'm in it you know it we we talk alot about these big round numbers Dow thirteen thousand ... indexes and had an awfully hard time getting above this Browne numbers that supposedly don't mean anything ... I says to me that people are wondering whether that ... the huge gains ... in the last couple months need to ... be to level off for a while ... after that it took about all these companies that make things to do ... Yelp ... people go to complainants the law ... the hamburger this restaurant ... did IKEA today ... after thinking about it yet the sixty here ... it sort of mean people ... people really went for this ... the the the thinking mind is that Yelp is doing very similar strategy that linked in ... other social media companies to ... be floating relatively small number of shares in the IPO ... to make sure that they have this first day ... what you seen any other cases and something people need to watch for is that ... the the the the follow-on trading is a little disappointing it certainly was ... the case for linked in ... Groupon's ugly still hasn't gotten back above its IPO price ... the ... my guess is you see something similar here ... now and he left ... sorry guys ... one good thing anything one reason may be ... doing so well today because in both of you been able to animate a little bit about that first day enthusiasm not played much but to the ocean again if the line on line with the entire company ... Saracens yet exactly the sites that use content generator from users for foreign ... to keep information ... we will do well because they are there so this ... they have Mohawks that you set up a platform in and tell what people do all the workshop ... I was skeptical about the interview I was ... tunnel ... Why Annie needed to prevent one or is there ... something his father in Ohio who owns a restaurant that on the computer and read ... industry people go ... for it the business of they've added one point three per liter still pumping and they are outraged may go on ... what what are my my general sense is that people take a handful of reviews with a grain of salt Stabenow full of them this means something and ... you know I mean the whole point of social media writers is that you ... you you can drop message from within ... leader readers that the fact that you're ... you're an investor ... do you worry ... Yelp IPO on Yelp using five so that ... that that ... I can't do it if ... read it ... for the ... tech got to get the ... hang of it a standout great weekend ... and stay with us with more recent coming up on this GM ball and they pull the plug thin ... welcome back to the NIT that I'm Kelsey Hubbard here with David Weidner for the half hour and we have found that news on the Chevy Volt is General Motors up pulling the plug on this why we're Sharon Terlep ... joining us from Detroit to ... share what is the latest on the electric car that even hear so much about ... Qantas ... why isn't all that ... they'd like to ... I they Ardi allow me a story and so ... that's that ... for while so I hear that ... it makes our ... again next month ... not too long of a break that rule eleven of May this year I'm ... and what were mainly is that this is due to lack of enthusiasm out what's really driving the fact ... is there anything on the sales numbers ... while I held ... today ... he is our ... salary that Samsung is well it's the end of day when ... I get is the isthe lottery ... while added ... I allowed to kill the prices IAG and U N investigation ... I think that ... the currency hit the battery which ... was eventually cleared ... BT since we last ... saw and heard that ... consumers are excited about our ... Cerner has one of the car analogies are announcing like GM is applying the brakes of all production ... down shifting or something like that but ... there are of the ... but that really do ... when you talk to consumers are the stories are read about this current one major problem is ... it costs too much ... it just costs too much at this stage ... and do you think that GMA actually during the time to rethink its pricing strategy ... and maybe sell some of the things that wants to create a loss leader and generate more excitement is that on the table ... yet I mean I think you're right I mean a lot of people have a hard line on the ... plane but strength of ... our baby cloth anything without ... I've ... seen me that they would confess what she is now self but he is here they have had a total of about the price it's ... are so ... so the US the right our desire to do even more on target here yet ... having the time we see oil prices ... so volatile a lot of people you ... can play in the faith of course we're going in the election you're talking about gas prices on going up as the head and the euro mean it had that done anything even a continual volatility in the oil market in the energy market than anything to help this party honestly it's not ... helping enough at this stage but that ... that means the hope that perhaps that will present ... remain high that people will ... the switch over to the electric cars ... the market last I heard she added oil prices go up ... PC sales back in February go up there were a rebate of one hundred and eighty was that he is eyeing ... we actually get to that of the of the ball ... here ... due to modern viewers now ... is this a fault only problem or are we seeing declining sales for Priuses and ... Leeson those other electric or hybrid vehicles out there ... for sale ... all the electric car out there that he can remotely comparable to the ball to me at the end ... so we thought also of those prior felony ... three-year numbers so far this year and the deeper into the banks found that they had lots of those people the party though ... I even laughed and ... get out there who think that I felt ... the injured hundred people they are struggling in my chat and be ... much more expensive more right back ... on a lack of people ... and this isn't just think that we really think about you know that when prisoners were talking about the collector cars seem to have so much momentum of the few in the current industry the car and cards you sort of ... imploding on itself a couple years ago for the gift of the way with any get it about developing new cars developing new products especially energy efficient ones and it just seems like that momentum just really have to panic if Americans whether they ... think you know there's people on the new what's interesting is when it yes I've fallen ... in baseball he was dishing Carso found ... that sixty in and it's just that all can eat it ... so I profile than somebody and seeing it ... so the fact that in effect be in touch with an Arctic sea and so they actually are signed up to be seen cars that has won ... an interesting point you have that right now the workers and four ... hoping for higher and higher gas prices to to push people from the start looking ... at these ... are the only ones out there from the house the night ... he spent a lot for joining us today we appreciate it ... a ... white social Security was designed in a fair bought it plays favorites will play havoc with you can be one of them coming up ... I've never been wondering how you might be able to outsmart social Security will Dachau is here to tell us ... a little but about how we can get ahead of these retirees who are out looking Social Security say they ... did that was designed to be fair but there are some favorite thing to ... emerge of death only as a as most people know when when when it comes time to make that decision you can start getting benefits as early as six to two weeks more benefits for one ... thing we did so ... full retirement age if you're turning sixty two this year that's age sixty six ... we can we as leaders seventeen pm ET the goodies plus side is the payments ... and so I get the worst all time when I start my payments ... a lot of people or under the assumption that ... the government actuaries and done their homework and they've made the calculation some of the matter one you choose ... everybody still gets pretty much same amount ... was not true with an enclosed from ... his study of now from ... professors ... at Stanford and an awesome college it ... basically shows is highly dependent on interest rates ... I can ... you think about it the product sold by financial companies of similar to this decision whether to ... give all money now in exchange for longer and larger came in some sort of home and when I'm in the right yes ... so two things are true of all minorities ... of the first of all you change the terms the use of new people based on interest rates to help determine ... the investment returns you can get ... a second one is ... and when it was paid careful attention to what ... is right to control the pricing could be toppled ... neither of those troops or security right but it doesn't change the deal according to experts ... and and and and has had me much much change in terms of of retirement ... bottom line ... real interest rates rate now or zero for effective for ... this ... and just about everyone out there is better off waiting ... for payments ... for only a couple of examples of people to take them earlier ... and really it's because ... your dollars are going to be worth more when you turn that ... yes because basically the internal return that you're you're getting mapping is probably better Newquay get in ... on her on anything related to save money right now so ... you're you're better off letting them money right to his professor said that ... everyone thinks they're getting the same deal but when you look in terms of the present value of future came and read ... you is it possible for some people to get women to give as much as eighteen percent more ... than the average and for many give as much as thirteen percent more ... her first I would I let ... that ... one thing I know this is ... what the story there are definitely some exceptions the mean ... interest rates side ... especially if you're married you really need to take a look into the breadwinner has been you know who's been working ... and they're a lot of ... it gets very complicated very fast on the stock and bond guy did David and I come up there and um got some falloff about ... so Security at Gardens is a grandma question on the lookout for half an hour to get the answers ... my head hurts from the map ... so how do they still sizzling ... but it's ... it's it really depends you may have one person taking it and ... the person waiting ... really recheck store ... on SmartMoney dot com I do my best highlight the professors findings that advice according to ... what you're married who worked what have you when you should start your benefits but at the bottom one is ... if you're not short you're probably better off waiting with interest rates this low ... a great day to think of the mighty another trip just as quickly as there ... might be better off taking them early in two innings and boosts are of course Lee is difficult to ... guess is that at how long you're going to live but ... where you can't people just are earlier cases we have ... to spouses and that no one's going to claim spousal benefits down the road and now there are times when when some people start early but ... it's massively cut its good it is not a conversation for video that's a conversation with ... the printed word and deed thinking program the light of potty concessions I might be that people who need the money right away ... now and also take into account years years ... I ... think is the guy a ... break up the information ... and of course the day said if you wanna read this article in all the ins and outs of that ... this is a quiet plan and what you need to now ... SmartMoney dot com ... and of course are talking about the IRA to this demands of the top of the Tsao and it got a bit sexy or you can believe that the the the the view that word ... I am but it is true and the sun is here ... to join them this is the river basin to love people are going to ... be very persistent ... and Laredo we we ... really ... have got focusing on Iran for Mitt Romney released some of his ... of financial information for some a lot people found out he's got ... close about a hundred million dollars in the individual time yes it look like David ... I got a yes this is the son of investing in the dollar the you know for sure some of the call is that it's it's ... it's a nice alternative ... I read that right ... well the the hedge fund and insurance and private equity ... the people I've ... ever ... that you can ... really while riding it back to when I read ... on ... an app that with that really got some amazing things Alaskan fishing I've been ... kind to me it's of course real staying hedge funds private equity ... tax lanes ... and even Oprah UPS's Reynolds ... of certain US media claimed they needed ... all the same NEX ... what what ... what ... does that thing and that the firm would mean the return into the business well you may know and having been completed and handed the adult thing ... and ... that he added that other Ostling actual counts in her ... also in months ... those ... trees in the morning I yet the weekend he think ... he has great heights he thinks he can to get along ... wonderful fifteen percent rate of return covered many years to cut about twenty five year and that we have had extreme patience ... the key thing investing in car went reason why ... and countries are used ... for musical instruments and office furniture highly Harry ... yet exactly of the four thousand dollars Department made out of college ... and so on he's investing in that with with this Iran you can do it but you gotta be careful with the Jets because you can do it that they needed a good idea to do it right we just talked about it you VXX your exotic things in China invested however your keys your very ... quick to point out that this gets very tricky very quickly exactly on one of the House oversight and investor we sizable buying foreclosed condos in an area in her neighborhood that she knows very well ... and she was buying ... up ... using irate cash to buy hundred thousand dollar condo and two hundred thousand dollar condo for a hundred ... eighty thousand dollar fine ... and its twin and in ... the win right away in snow for its can't let them ... know she can ... with any repairs even if ... it were or subsurface in the three red text across the country to can eat into the Twitter account minimum later ... that there are lots of very tough rules of the story explains all ... that well ... one thing from her interesting is that ... this is kind of exploding it's kind of cancer in ... a bigger part of hiring plans yet even though the traditional but it's still far out of or ... what but we do ... we are seeing people treating her creative ... and the companies that handle this ... well they're coming into the MTC have to do a lot of research to make more ... of them were working with is the ... desolate had explosive grants of sometimes I haven't ... been back and at the top of the money ... this can be done the bottom line is they can't work ... very well if you have special knowledge or special access ... but I wouldn't think that you and you can just ... put money in a field ... grow forever ... happy nine ... months of the things that they get their outlook says that that kind of ... interesting is that I think you can invest in paddle for example but not comic books the life insurance and asset from their houses and narrow collectibles and antiques Nanuet comic books and ... no ongoing us is that the ... point that you would like to add has to come in and maintain points here ... ha ha because of anything for collectors went ... on a month ... our intent or no no when Kate snow arrives at a bit of that one of things that people should really look into is that a boning up on the tax rules to our yet well there's a lot of you have to be sure ... the intact and that will then you probably have to pack provides a very good advice and pay higher fees to maintain these accounts this is like the right words for you to have a direct or bingo I ... think it's ... I this is really serious I wish I knew was that high wealth high net worth individuals who are a lot of ... necessarily sending people to snipping I think there's someone out there who has Alaskan fishing rights ... you had access to the rights and it makes a good bit of irony investment because the commute underwritten rented out ... so they can be high for love but for me I think ... Ferguson and his riskier ... we're still waiting for the second one ... ay ay ay ... that qualifies the pain ... I thought thank you so much for joining us be preceded it ... and her seventy can be more about this ... in tomorrow's Wall Street Journal Chris is a lot and set a very interesting people and picks up and it is not for that ... the thing apart the softly jumping to their lot of rules and regulations they wanna check that out ... I but next Das said that the that might be a group of people that are doing well on Wall Street and you might not know about our well it's it's here to tell us ... about it out thanks for joining us today and I love the story and I'm excited frolic comments really get one free and talk about this but ... you're telling us that it's a ... probable likely ... that there are some psychopaths out there reading Wall Street ... itself well she did cycle path running Wall Street the single best mom in some of our biggest companies ... on certainly in the U S Senate in Congress we've seen our share ... of psychopaths ... you know that really refers to people who don't have a conscience ... to take bold risks ... and sometimes they're a bit narcissistic ... they really don't need to be for a one ounce and we all know people like this there was a book written in two thousand and five by Harvard psychologist bought the stock is that while ... every twenty five people and Erica are actually so she passes another term for psychopath can type a personality disorder on you name it ... but don't you know these people did very well in any sort of and we now we're competitive ... aggressive behavior ... even anti social behavior is rewarded ... and we go up in the display a tremendous amount of the grandiose even competence and endured their plots ... so I think that these people ... you know it yet it get that they'd rather than buy rating on end up being just the dollar and roll Hall in a stall but if you sign on the Harbour New phenomenon I assume ... that in India get your boss or maybe a senator ... banking in ... the island ... and were talkin bout Wall Street or the Wall Street Journal but in terms of heaven are higher than ... the ... chances that saw live ... album and as I mean this is really fastening to me you actually interviewed on someone who ... three races discloses that he's a psychopath and ... and what it what you say in regards to what he sees on Wall Street versus ... the kind of guy he is ... research ... presented at the top of the story says that one out of ... every ten persons on Wall Street is likely ... to ... be a psychopath ... ninety cents ... and my safety and typing about Sam can target is the chief financial officer of crazy Eddie ... it's been the biggest Och hunts ... of the nineteen eighties ... he says he thinks it's much higher than any he says it's a data center ... the area ... if the site and that terror it announced that this assertive in mainstream because of Sony about them that's not really is that that that that is a disorder anymore having said that the Society of God ... the actually ... sure that that is the Fiat of a change in the sense that ... now it bet that back end justifies the means people can get to the top we get ... the money get the job of the success of their revered in society is to some extent that the power and in ... you now and it sort of tell it the little telling your story about perhaps where we are having fun playing it ... absolutely right that he'd never had this experience of watching somebody like Gap having to change their mind ECB in for an orange jumpsuit ... and ... age in all of a sudden the bill comes off the new CEO Tim to cycle ... he was respected member ... of the ... you know ... society ... on and we see this only time I mean I can tell you ... again for any day now ... if you are probably find his psychological profile you would see all these words and talking about ... but before that then OK ma everyone said that he was a great man and how dare you even think that he's not investing money in and it's all just a Ponzi scheme ... for example island on something else to ... think about ... maybe somebody who was putting together mortgage product ... and then ... having it ... set up so there would fail ... in actually burned somebody that they knew that there were going to make fees on it and that somebody who doesn't obviously ... have a sense of right or wrong ... well you know what David you can just get this day in our you can argue about it but how else to explain the never ending stream of scandals and implosions on Wall Street ... at the end of the day when you start to look at these individual cases in the individuals who end up being responsible ... and most of them are actually caught but when the outcry ... you don't yet I can't say I sat down ... and the explanation is that the slightly doesn't care what anybody else ... he only cares about itself is going to take risks and destructive even to himself ... you're definitely not one of those people I think about themselves to get that one event of a year at a school right now the readings and sovereign I'm doctor says that one hundred made birthday ... so we really have to highlight that a great thing to do today and I'm happy to have a doctor's letter included am not a silly dance much ... I think I should ... that search again ... for joining me now we're thinking ... of helping other than Anthony suffered and have a creepy ... ay ay ay ...